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China Urges US to End “Reciprocal Tariffs” as Trade Tensions Persist
Beijing is pressing U.S. President Donald Trump to completely eliminate what it terms “reciprocal tariffs,” amidst ongoing trade friction between the globe’s two largest economies. This appeal comes after President Trump recently announced a temporary 90-day delay on a range of global tariffs, even as he intensified duties on Chinese goods to 145%.
China’s Commerce Ministry Calls for Reversal of “Incorrect Practices”
In a released statement, China’s commerce ministry declared, “We implore the U.S. to take substantial action to rectify its errors, fully abolish the misguided approach of ‘reciprocal tariffs,’ and revert to the correct path of mutual respect.” This strong statement underscores China’s firm stance against the escalating trade dispute.
US Signals Potential Tariff Exemptions, but Uncertainty Remains
The Trump administration initially appeared to offer a conciliatory gesture on Friday, indicating that certain electronic products, including those manufactured in China, would be granted exemptions from tariffs. This raised hopes for a potential easing of trade tensions.
Contradictory Statements Fuel Confusion
However, U.S. Commerce Secretary Howard Lutnick, in a Sunday interview with ABC News, tempered these expectations by stating that such exemptions would only be provisional. He elaborated that the administration intended to implement similar levies under a separate “semiconductor tariff,” scheduled for announcement at a later date.
“We need to have these things made in America,” Lutnick asserted, emphasizing the administration’s push for domestic manufacturing.
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President Trump Denies Exemptions, Hints at Further Tariffs
President Trump subsequently intervened via social media, refuting reports of exemptions for electronic products as inaccurate. He clarified that these items were simply being “moving to a different Tariff ‘bucket'”.
Trump further added, “We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations,” suggesting further trade actions are under consideration. These remarks injected considerable ambiguity into the recently declared tariff exclusions for vital technology commodities such as smartphones, computers, and semiconductors, leaving the industry in a state of flux.
Beijing Evaluates “Small Step” Amidst Future Tariff Concerns
The Chinese commerce ministry had previously characterized the exemptions as a mere “small step” by the U.S., indicating that Beijing was still “evaluating the impact” of this limited measure. The Trump administration’s allusions to prospective levies, however, could diminish optimism for a détente in the protectionist postures adopted by the two economic rivals.
No Immediate Plans for US-China Leaders to Converse
When questioned on Sunday about any potential dialogue between President Trump and Chinese President Xi Jinping, U.S. Trade Representative Jamieson Greer disclosed, “Right now we don’t have any plans on that.” This statement, made during a CBS’s Face the Nation appearance, suggests that high-level communication to resolve the trade impasse is not currently on the agenda.
Escalating Tariffs Define Trade War
The U.S. initiated tariffs on Chinese imports at a rate of 54% in early April, progressively escalating them to the current 145% level. This aggressive tariff policy has been a central feature of the trade dispute.
China Retaliates with Counter-Tariffs
China has responded in kind with retaliatory tariffs, initially imposing levies of 34% on U.S. goods, subsequently raising them to 84%, and then to 125%, with the latter increment taking effect on Saturday. In announcing its most recent tariffs the previous week, China’s commerce ministry declared its resolve to “fight to the end” if the U.S. “insists on provoking a tariff war or trade war,” underscoring the deepening trade conflict.
White House Defends Tariffs as Negotiation Tactic
Late on Saturday, while en route to Miami, Florida, President Trump mentioned that he would provide further details regarding the exemptions at the beginning of the following week. The White House has consistently maintained that tariffs are employed as a negotiating tool to secure more advantageous trade agreements with other nations.
President Trump has asserted that his tariff policy aims to rectify imbalances within the global trading system and to incentivize the repatriation of jobs and manufacturing facilities to the United States. However, his interventions have sparked considerable volatility in the stock market, raising anxieties about a contraction in global trade that could precipitate adverse consequences for employment and individual economies worldwide.